Examlex
Which of the following is true?
Accounting Equation
The accounting equation is a fundamental principle of financial accounting that states assets equal liabilities plus equity.
Source Documents
Original records or documents that contain the details of a business transaction, used as evidence in accounting.
Financial Leverage
The use of borrowed funds (debt) to amplify returns from investments or projects.
Debt Ratio
A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.
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